RBC already has a strong presence in the United States, where it employs 8,000 people, including more than 3,000 in New York.

"We're very enthused about merging with RBC," said City National chairman and CEO Russell Goldsmith.

RBC's chief executive Dave McKay said that: "In line with RBC's strategic goals, we believe this combination creates a powerful expansion platform for focused long-term growth in the country which we view as our second home market."

The deal is set to close in the fourth quarter of the year subject to regulatory approvals and the approval of City National's common stockholders.